Managing money isn’t just about paying bills on time or sticking to a budget. It’s about understanding the full picture of your financial life and making choices that are designed to help set you up for success. One of the most valuable personal finance tips is to schedule a financial review. Think of it as a health check for your finances, a way to see what’s working, what needs attention and how you can move closer to your goals.
Why a financial review matters
A financial review is more than a quick glance at your bank balance. It’s a comprehensive look at everything that impacts your financial well-being: income, expenses, savings, investments, debts and even insurance coverage. When you pull all these pieces together, patterns start to emerge. You might notice areas where you’re overspending, opportunities to save more or gaps in your long-term planning.
This process isn’t just for people nearing retirement or those with complex portfolios. Whether you’re saving for a down payment, planning for college costs or simply trying to feel more in control of your money, a financial review helps give you clarity. It helps you track progress and make informed decisions instead of guessing or reacting in the moment.
Learn more: How to Prepare for Your First Talk with a Financial Professional: Meeting Checklist
What to gather before you start
Preparation makes the review process smoother and more meaningful. Here’s what you’ll want to have on hand:
Key documents and statements
- Bank and investment account summaries: Checking, savings, retirement accounts and any brokerage statements.
- Outstanding debts: Student loans, mortgages, credit cards, car loans and anything else you owe.
- Income details: Pay stubs or statements showing your monthly earnings.
- Spending records: A snapshot of your monthly expenses, including discretionary spending.
- Upcoming big expenses: Vacations, home repairs or major purchases.
- Insurance policies and estate planning documents: Life, health, property insurance, wills and trusts.
Your financial goals
Goals give your review purpose. Break them into two categories.
- Short-term goals: Building an emergency fund, planning a trip or tackling credit card debt.
- Long-term goals: Retirement savings, funding a child’s education or buying property.
Having these details ready ensures your review isn’t just about numbers. It’s about aligning those numbers with what matters most to you.
Why it’s worth doing
Life changes constantly – new jobs, growing families, unexpected expenses. One of the most overlooked personal finance tips is making sure your financial strategy evolves with those changes. A regular review helps you:
- Adjust your strategy as life changes. A raise might mean increasing retirement contributions. A new baby could prompt starting a college fund.
- Spot opportunities to save or invest smarter. Maybe you’re paying for subscriptions you don’t use or missing out on employer retirement matches.
- Stay focused on priorities. When you know what matters most, it’s easier to say no to distractions and yes to what moves you forward.
A financial review isn’t about restriction; it’s about empowerment. It helps you build the confidence to make decisions that support your future.
Common questions
How often should I review my finances?
Once a year is a good starting point. But if you experience a major life event, like getting married, buying a home or changing jobs, schedule a review sooner.
Can I do it myself?
Yes. Many people start with a DIY approach using spreadsheets or budgeting apps. However, working with a financial professional can add value, especially if you want personalized strategies or have complex goals.
Is it useful if I’m just starting out?
Yes. In fact, the earlier you begin, the better. A financial review helps you avoid common pitfalls and build habits that may help you over time.
Ready to take the next step?
Whether you’re fresh out of college or approaching retirement, a financial review gives you clarity and direction. It shows where you stand today, where you want to go and the steps to get there.
By making financial reviews a regular habit, you’ll be better equipped to handle life’s curveballs, seize opportunities and stay on track toward your goals. It’s a simple but powerful way to take control of your financial future.
Representatives of Ameritas do not provide tax or legal advice. Please consult your tax advisor or attorney regarding your specific situation.
Ready to take the next step toward your financial goals?
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